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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI ABRAHAM P.GEORGE & SHRI GEORGE MATHAN
आदेश / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER:
is an appeal filed by the assessee against the Order of the Commissioner of Income Tax (Appeals)-2, Coimbatore, in dated 31.03.2017 for the AY 2012-13.
Shri Sailendra Mamidi, CIT represented on behalf of the Revenue and None represented on behalf of the assessee, however, Written Submission has been filed from the Office of Shri S.Krishnamoorthy & Co., CAs.
In the Written Submission, the only issue has been brought out by the assessee is against the action of the Ld.CIT(A) in confirming the action of the AO in not allowing the depreciation in respect of the assets which has already been granted deduction as application in respect of the
In reply, the Ld.DR vehemently supported the order of the AO and the Ld.CIT(A).
A perusal of the Written Submission shows that the assessee has relied upon the decision of the Hon’ble Supreme Court in the case of Rajasthan Gujarati Charitable Foundation, Poona, in Civil Appeal No.7186 of 2014, wherein it has been held as follows:
After hearing learned counsel for the parties, we are of the opinion that the aforesaid view taken by the Bombay High Court correctly states the principles of law and there is no need to interfere with the same. It may be mentioned that most of the High Courts have taken the aforesaid view with only exception thereto by the High Court of Kerala which has taken a contrary view in 'Lissie Medical Institutions v. Commissioner of Income Tax'. It may also be mentioned at this stage that the legislature, realizing that there was no specific provision in this behalf in the Income Tax Act, has made amendment in Section 11(6) of the Act vide Finance Act No. 2/2014 which became effective from the Assessment Year 2015-2016. The Delhi High Court has taken the view and rightly so, that the said amendment is prospective in nature. It also follows that once assessee is allowed depreciation, he shall be entitled to carry forward the depreciation as well.
We have considered the rival submissions.
As it is noticed that the issue is squarely covered by the decision of the Hon’ble Supreme Court in the case of Rajasthan Gujarati Charitable Foundation, Poona, referred to supra, respectfully following the decision of the Hon’ble Supreme Court in the case of Rajasthan Gujarati Charitable Foundation, Poona, the AO is directed to grant the benefit of depreciation as claimed in respect of the assets, though the same has been claimed as application.
In the result, the appeal filed by the assessee is allowed.